Sale of DHL Express Domestic Business Raises Job Loss Concerns

May 10, 2011, 3:41 PM EST

A 10-year strategic alliance between DHL Express (Canada) Ltd and TransForce Inc. which will see DHL's domestic business purchased and operated as Loomis Express, is creating concern about potential job losses at the courier business.

Bob Chernecki, assistant to the CAW President, said the corporation has agreed the CAW collective agreement is in full force and will be followed. But with the CAW representing 3,500 members across Canada in BC, Alberta, Manitoba, Saskatchewan, Ontario and Nova Scotia, Chernecki said there are concerns about the potential of job losses.

"We are fully aware of what these types of situations mean in terms of potential job loss when major corporations come together," said Chernecki.

'We are watching this situation very carefully and working with local leadership and senior levels of the corporation to ensure our members interests are protected," Chernecki said.

In a May 3 letter to CAW National Secretary-Treasurer Peter Kennedy the DHL President Mathieu Floreani states the vast majority of DHL's current workforce will transfer to Loomis Express. He also states Loomis Express will recognize CAW as the exclusive bargaining agent in provinces where CAW currently represents DHL.

CAW National Representative Len Poirier said the sale raises uncertainty for the workforce.

"The split of one company into two organizations will be a trying time for our members, but we have confirmation that seniority will be recognized through the transition," said Poirier. "In the end we are going to end up with collective agreements with Loomis Express and DHL and it will be important that the membership participates in our meetings and takes direction from their local union leadership," Poirier said.

The sale is scheduled to close May 30 when Loomis Express will become owner of DHL's domestic business. While there will be a transition period the integrated operations of the two companies will be separated in stages with the process complete no later than October 31, 2011. DHL and Loomis will continue to be "strategically aligned" but operate wholly independently, according to the letter.